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A firm wants to strengthen its financial position. Which one of the following actions wouldINCREASE its current ratio?ABReduce the company's days' sales outstanding to the
A firm wants to strengthen its financial position. Which one of the following actions wouldINCREASE its current ratio?ABReduce the company's days' sales outstanding to the industry average anduse the resulting cash savings to purchase plant and equipment.Use cash to repurchase some of the company's own stock.Issue new stock, then use some of the proceeds to purchase additionalinventory and hold the remainder as cash.
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